Ola Electric shares: EV stock down 8% in 3 sessions amid fresh capital raise plans

Shares of Ola Electric Mobility Ltd slipped 3 per cent in Thursday’s trade after the company said it will consider raising fresh capital this weekend, fueling investor worries over potential dilution of existing equity.

Shares of Ola Electric slipped on Thursday, falling as much as 2.56 per cent to hit a day’s low of Rs 52.02 on the BSE, against the previous close of Rs 53.39 apiece. At the last check, the stock was trading 1.67 per cent lower at Rs 52.52. The counter has lost 8.2 per cent over the past three trading sessions.

In a filing to the stock exchanges, dated October 22, the EV manufacturer outlined its plans. "We wish to inform you that a meeting of the Board of Directors of the Company has been convened on Saturday, October 25," the filing stated. The primary agenda item is to "consider and approve the proposal of raising of funds," it said.

The market's apprehension likely stems from the proposed methods for the capital influx. The company is evaluating the "issuance equity shares or any other eligible securities". The permissible modes being considered include, but are not limited to, "a private placement, a qualified institutions placement, preferential issue, or any other method or combination of methods".

This comes after the company, on Tuesday, issued a clarification regarding media reports that its executives, including CEO Bhavish Aggarwal, were booked by Bengaluru Police in connection with the abetment to suicide of a former employee. While confirming the registration of an FIR, Ola Electric stated in a filing that it has challenged the action in the High Court of Karnataka, which has passed "protective orders" in favor of the company and its officials. The EV maker added that no charge sheet has been filed and that it is fully cooperating with the authorities.